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Repay Holdings Corp (RPAY)
NASDAQ:RPAY
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Repay Holdings
(NASDAQ:RPAY)
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Rating:46Neutral
Price Target:
$5.00
▼(-4.40% Downside)
Repay Holdings' overall stock score is primarily impacted by its financial performance and valuation. The company's profitability challenges and negative P/E ratio weigh heavily on the score. Technical indicators suggest a bearish trend, further contributing to a lower score. While the earnings call provided some positive outlook, it was not factored into the score due to the redistribution of weights.
Positive Factors
Strong Cash Generation
Strong cash generation supports financial stability and provides flexibility for strategic investments, enhancing long-term growth prospects.
Expansion in Consumer Payments
Expanding client base in consumer payments strengthens market position and drives future revenue growth, leveraging industry trends towards digital payments.
Strong Supplier Network Growth
A robust supplier network enhances B2B offerings, providing competitive advantages and supporting long-term business scalability.
Negative Factors
Profitability Challenges
Persistent profitability issues can hinder long-term financial health, limiting reinvestment opportunities and affecting shareholder value.
Business Payments Segment Weakness
Weakness in the Business Payments segment can impact overall growth, requiring strategic adjustments to regain momentum and profitability.
Revenue Growth Challenges
Slow revenue growth indicates challenges in market expansion and competitive positioning, potentially affecting long-term business sustainability.
Repay Holdings (RPAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$461.98M
Dividend YieldN/A
Average Volume (3M)769.22K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth1.45%
EPS Growth-28.78%
CountryUS
Employees465
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.20
Shares Outstanding81,548,740
10 Day Avg. Volume845,764
30 Day Avg. Volume769,215
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)0.90
Price to Sales (P/S)2.19
P/FCF Ratio4.60
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue2.40
Enterprise Value/Gross Profit3.15
Enterprise Value/Ebitda-91.09
Forecast
1Y Price Target
$8.25Price Target Upside57.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Repay Holdings Business Overview & Revenue Model
Company DescriptionRepay Holdings Corporation provides integrated payment processing solutions to industry-oriented markets. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit processing, virtual credit card processing, automated clearing house (ACH) processing, enhanced ACH processing, and instant funding that are processed through its proprietary payment channels, such as Web-based, mobile application, text-to-pay, interactive voice response, and point of sale. In addition, the company provides payment processing solutions to customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals. It sells its products through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.
How the Company Makes MoneyRepay Holdings generates revenue primarily through transaction fees charged to merchants for processing payments. This includes fees for credit card processing, ACH transactions, and other electronic payment methods. In addition to transaction fees, the company also earns revenue from subscription services and software licensing for its payment processing platforms. Significant partnerships with financial institutions and technology providers enhance its service offerings and expand its customer base, further contributing to its earnings. Additionally, Repay may benefit from increased transaction volume driven by the growing trend towards digital payments across various sectors.
Repay Holdings Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted REPAY's efforts to reaccelerate growth with improvements in revenue, strong adjusted EBITDA margins, and increased free cash flow conversion. However, challenges remain in the Business Payments segment with a decline in gross profit and softness in the AR client base. The company is optimistic about future growth with strategic investments and a strong supplier network.Q2-2025 Updates
Positive Updates
Sequential Improvement in Revenue
REPAY reported a 1% year-over-year increase in revenue for Q2 2025, demonstrating a sequential improvement in growth.
Strong Adjusted EBITDA Margins
The company maintained strong adjusted EBITDA margins of 42% during the quarter, while also investing in organic growth opportunities.
Increased Free Cash Flow Conversion
Q2 reported free cash flow conversion improved to 71%, indicating solid cash generation capabilities.
Expansion in Consumer Payments
REPAY onboarded several new clients in the financial institution vertical, including 10 new credit union wins, increasing its total credit union client base to 353.
Share Repurchase Program
During Q2, REPAY repurchased approximately 5% of its outstanding shares, totaling $38 million.
New CFO Appointment
REPAY announced the appointment of Robert Houser as the new Chief Financial Officer, bringing over a decade of experience in the payment industry.
Strong Supplier Network Growth
The supplier network grew 47% year-over-year to over 440,000 suppliers, enhancing B2B capabilities.
Negative Updates
Decline in Business Payments Gross Profit
Business Payments segment gross profit decreased by approximately 5% year-over-year, impacted by client losses and political media contributions.
AR Client Base Softness
The Business Payments segment experienced softness in the AR client base, impacting overall performance.
Revenue Growth Challenges
Despite sequential improvement, the year-over-year revenue growth was only 1%, reflecting challenges in achieving higher growth rates.
Company Guidance
During REPAY's Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating a positive outlook for the remainder of the year. They reported a year-over-year revenue increase of 1% for Q2 2025, despite a 2% decline in gross profit, impacted by client losses and political media contributions from 2024. Adjusted EBITDA margins remained robust at 42%, with free cash flow conversion improving to 71%. For the second half of 2025, REPAY anticipates high-single digit to low-double digit normalized gross profit growth, with an acceleration in free cash flow conversion above 60% by Q4. The company emphasized its strategic focus on organic growth, managing capital expenditures, and potential strategic M&A activities, while also planning to address its $220 million convertible notes due in 2026. REPAY has also been actively repurchasing shares, buying back 7.9 million shares for $38 million year-to-date. The company is optimistic about its Consumer and Business Payments segments and expects growth to continue as they move into 2026.Repay Holdings Financial Statement Overview
Summary
Repay Holdings faces profitability challenges with consistent net losses and negative EBIT. However, strong gross profit margins and positive cash flow metrics provide some stability. Debt levels are manageable, but improvements in profitability are essential for long-term growth.Income Statement
Repay Holdings has shown inconsistent revenue growth, with a declining trend from 2024 to TTM. The gross profit margin is strong but the consistent negative net income and EBIT margins indicate profitability challenges. The EBITDA margin remains positive but volatile.45
Neutral
Balance Sheet
The company maintains a moderate debt-to-equity ratio, reflecting balanced leverage, though the equity ratio has slightly decreased over time. Return on equity is negative due to persistent net losses, posing a risk.55
Neutral
Cash Flow
Free cash flow has shown positive growth, and operating cash flow exceeds net income, indicating strong cash generation despite negative earnings. The free cash flow to net income ratio is favorable, highlighting efficient cash management.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 310.37M | 313.04M | 296.63M | 279.23M | 219.26M | 155.04M |
| Gross Profit | 237.16M | 241.41M | 226.92M | 214.40M | 163.77M | 113.59M |
| EBITDA | -8.19M | 100.66M | 78.27M | 65.34M | 43.72M | -54.47M |
| Net Income | -111.07M | -10.16M | -110.49M | 12.84M | -50.08M | -105.60M |
Balance Sheet | ||||||
| Total Assets | 1.41B | 1.57B | 1.52B | 1.63B | 1.69B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 196.41M | 189.53M | 118.10M | 64.89M | 50.05M | 91.13M |
| Total Debt | 509.53M | 508.51M | 443.04M | 461.88M | 459.57M | 267.08M |
| Total Liabilities | 773.97M | 798.74M | 689.04M | 698.51M | 772.80M | 553.80M |
| Stockholders Equity | 633.70M | 761.27M | 815.13M | 894.56M | 874.00M | 509.31M |
Cash Flow | ||||||
| Free Cash Flow | 96.25M | 149.10M | 102.88M | 34.68M | 29.82M | 4.21M |
| Operating Cash Flow | 96.81M | 150.09M | 103.61M | 74.22M | 53.33M | 28.49M |
| Investing Cash Flow | -32.57M | -44.85M | -24.09M | -39.54M | -397.34M | -145.98M |
| Financing Cash Flow | -29.09M | -12.67M | -28.94M | -17.46M | 313.84M | 186.10M |
Repay Holdings Technical Analysis
Negative
5.23
Price Trends
5.48
Negative
5.10
Positive
5.73
Negative
Market Momentum
-0.09
Positive
42.83
Neutral
27.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPAY, the sentiment is Negative. The current price of 5.23 is below the 20-day moving average (MA) of 5.58, below the 50-day MA of 5.48, and below the 200-day MA of 5.73, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 27.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RPAY.
Repay Holdings Risk Analysis
Repay Holdings disclosed 47 risk factors in its most recent earnings report. Repay Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Repay Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.17B | 22.90 | 12.95% | ― | 13.02% | -2.57% | |
73 Outperform | $1.04B | 6.48 | 31.15% | ― | -29.93% | 389400.00% | |
69 Neutral | $332.16M | 50.33 | 12.54% | ― | 27.84% | -13.78% | |
57 Neutral | $549.84M | 26.44 | -25.74% | ― | 12.86% | ― | |
46 Neutral | $461.98M | ― | -15.33% | ― | 1.45% | -28.78% | |
43 Neutral | $789.25M | -7.79 | -137.66% | ― | 111.83% | 73.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
RPAY
Repay Holdings
5.24
-2.58
-32.99%
IIIV
I3 Verticals
32.16
11.01
52.06%
PAYS
PaySign
6.10
2.44
66.67%
PRTH
Priority Technology Holdings
6.88
0.98
16.61%
PAYO
Payoneer
6.03
-1.56
-20.55%
BKKT
Bakkt Holdings, Inc. Class A
34.15
25.08
276.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.